SAP Best Practices for Subsidiary Integration in One Client Production with Intercompany Replenishment EHP4 for SAP ERP 6.0 SAP Business All-in-One.

SAP Best Practices for SubsidiaryIntegration in One Client

Production with Intercompany Replenishment

EHP4 for SAP ERP 6.0SAP Business All-in-One

Scenario OverviewPurpose and Benefits

Purpose This scenario covers collaboration within a corporate group where the headquarters and the

subsidiaries act as an occasional supplier between each other. Requesting Plant looks for a temporary source of supply due to Material shortage (any

material type) or lack of production capacity (finished or semi-finished product) Buyer from the requesting Plant manually requests a material transfer from another Plant. Each Plant belongs to different organization and different company code.

Benefits Automation of the collaboration between headquarters and its subsidiaries Transactional focus, providing fully integrated business processes Based on existing well-tried Best Practice Scenarios Transparent view of outstanding stock transfers, stock-in-transit Efficient Processing of intercompany stock transfers

Purpose and Benefits:

Scenario Overview Flows and key points

Process Flows and Key points:Process flows covered

Stock overview between Plants Planning overview between Plants Capacity analysis Purchase order (manually) Production Data changes Costing run BOM compare Order BOM Management Order Change Management (OCM)

Key Points Integrated collaboration between headquarters and associated subsidiaries Rapid ROI by reusing existing data exchange capabilities Built upon established SAP Best Practices Baseline package scenarios

SAP Applications Required:

Required Headquarter with SAP ECC 6.0 EhP4 with related country BAiO Baseline

Solution V1.604 installed Purchase Organization (Subsidiary 1 and 2) with the solution SAP BAiO for

Subsidiary Integration V1.604 installed with related country Baseline Solution V1.604 variant files on the same SAP ECC 6.0 EhP4 instance and client as the headquarter

Company roles involved in the process flows Purchaser Production Planner Warehouse Clerk Warehouse Manager Billing Administrator Accounts Payable Accountant

Scenario OverviewRequirements and involved roles

Business Process: Production with Intercompany Replenishment (Variant 1)

Production with Intercompany ReplenishmentStock Availability Process:

Requesting Plant checks Delivering Plant stock availability Requesting Plant creates and prints intercompany purchase order Delivering Plant creates cross company delivery Delivering Plant posts the Goods Issue (GI) and prints delivery note Requesting Plant posts the Goods Receipt (GR) Delivering Plant creates the intercompany billing Requesting Plant processes the intercompany payment

Delivering Plant(Headquarter or

Subsidiary)

Requesting Plant(Headquarter or

Subsidiary)

1Stock availability check

5Intercompany Payment

Billing4

2Intercompany Purchase Order

3aDelivery process GIGR

3b

/ /


Production with Intercompany ReplenishmentCapacity analysis and manufacturing Process:

Requesting Plant asks Delivering Plant Capacity Analysis Delivering Plant confirms available Capacity Requesting Plant creates and prints intercompany purchase order Delivering Plant creates and confirms production order Delivering Plant creates cross company delivery Delivering Plant posts the Goods Issue (GI) and prints delivery note Requesting Plant posts the Goods Receipt (GR) Delivering Plant creates the intercompany billing Requesting Plant processes the intercompany payment


Subsidiary)


Subsidiary)

1Capacity check


Billing5



4b

/ /

Available Capacity1a

3Production orderand confirmation


Production with Intercompany ReplenishmentManufacturing Process with Production Data Changes:

Delivering Plant changes Production Data Costing Run and dispatched information by the Headquarter to Subsidiaries BOM Comparison and Costing Comparison in the Requesting Plant Requesting Plant asks Delivering Plant Capacity Analysis Delivering Plant confirms available Capacity Requesting Plant creates and prints intercompany purchase order Delivering Plant creates and confirms production order Delivering Plant creates cross company delivery and posts the Goods Issue (GI) Requesting Plant posts the Goods Receipt (GR) Delivering Plant creates the intercompany billing Requesting Plant processes the intercompany payment


Subsidiary)


Subsidiary)

4Capacity check


Billing8



7b

/ /

Available Capacity

Production orderand confirmation

1Change Production Data

6

2Costing Run +information spread

4a

3BOM and Costing Comparison

Business Process: Production with Intercompany Replenishment (Variant 4 - Step1)

Production with Intercompany ReplenishmentManufacturing Process with Order Change Management:

Customer Request for Quotation to the Requesting Plant (not demonstrated in this scenario) Quotation Generation and acceptance (not demonstrated in this scenario) Sales Order Generation in the Delivering Plant Delivering Plant creates and releases Production Order Requesting Plant changes the initial Sales Order Delivering Plant changes the Production Order using Order Change Management Delivering Plant creates delivery to Customer and posts the Goods Issue (GI) Delivering Plant creates the intercompany billing Requesting Plant processes the intercompany payment Requesting Plant creates the Customer billing Customer processes the payment

9

Intercompany Payment

Intercompany Billing8

4Sales Order Change


7b


Subsidiary)

/


Subsidiary)

/

Customer

1

Request forQuotation

Sales Order 2 Order Change

Management

ProductionOrder3

5

ChangeProductionOrder and ProductionOrder Confirmation

6

Billin

g

10

11

Paym

ent

Business Process: Production with Intercompany Replenishment (Variant 4 - Step2)

Production with Intercompany ReplenishmentManufacturing Process with Order Change Management:

Customer Request for Quotation to the Requesting Plant (not covered in this scenario) Quotation Generation and acceptance (not covered in this scenario) Sales Order Generation in the Delivering Plant Order BOM Generation in the Delivering Plant Delivering Plant creates and releases Production Order Delivering Plant changes the Order BOM and the Production Order using Order Change Management Delivering Plant creates delivery to Customer and posts the Goods Issue (GI) Delivering Plant creates the intercompany billing Requesting Plant processes the intercompany payment Requesting Plant creates the Customer billing Customer processes the payment

10


8b


Subsidiary)

/


Subsidiary)

/

Customer

1

Request forQuotation

Sales Order 2

3

Order BOMManagement

Order ChangeManagement

ProductionOrder4

5

ChangeOrder BOM

6

ChangeProductionOrder and ProductionOrder Confirmation

7

Billin

g

11

12

Paym

ent


Intercompany Billing9

Process Description in Detail:

Check Material stock availability

Create/Print/Send Intercompany Purchase Order

Post the Goods Receipt

Verify invoice

Process outgoing payment

RequestingPlant

Material stock available for manufactured product

Create Delivery

Pick Material on stock

Post the Goods Issue and print delivery note

Create/Send/Print Billing Document

Pro

duct

ion

wit

h Inte

rcom

pany

Reple

nis

hm

ent

-Sto

ck A

vaila

bili

ty P

roce

ss

Business Process in Detail: Production with Intercompany Replenishment (Variant 1)

/ /

DeliveringPlant


Request Capacity Check



Verify invoice


RequestingPlant

Check potential Capacity

Release Manufacturing Process

Confirm Manufacturing Process

Post Manufacturing Goods Receipt

Post Components Consumption Goods Issue

Create Delivery

Pick Material from stock



Pro

duct

ion

wit

h Inte

rcom

pany

Reple

nis

hm

ent

-M

anufa

cturi

ng P

roce

ss


/ /

DeliveringPlant


BOM and Costing Comparison

Request Capacity Check



Verify invoice


RequestingPlant

Change Production Data

Costing Run + information spread

Check potential Capacity


Confirm Manufacturing Process



Create Delivery




Pro

duct

ion

wit

h Inte

rcom

pany

Reple

nis

hm

ent

-M

anufa

cturi

ng P

roce

ss w

ith

Pro

duct

ion

Data

Changes


/ /

DeliveringPlant


Quotation

Sales Order Creation

Sales Order Change

Verify invoice



RequestingPlant


Setting Order Change Management

Change Production Order



Create Delivery




Pro

duct

ion

wit

h Inte

rcom

pany

Reple

nis

hm

ent

-M

anufa

cturi

ng P

roce

ss w

ith

Ord

er

Chan

ge M

anagem

ent

wit

hout

Ord

er

BO

M

Business Process in Detail: Production with Intercompany Replenishment (Variant 4 - Step1)

/ /

DeliveringPlant

Request for Quotation

Requirements Change


Verify invoice


Customer


Quotation

Sales Order Creation

Verify invoice



RequestingPlant

Order BOM Management


Change Order BOM

Setting Order Change Management




Create Delivery




Business Process in Detail: Production with Intercompany Replenishment (Variant 4 - Step2)

/ /

DeliveringPlant



Verify invoice


Customer

Pro

duct

ion

wit

h Inte

rcom

pany

Reple

nis

hm

ent

-M

anufa

cturi

ng P

roce

ss w

ith

Ord

er

Chan

ge M

anagem

ent

wit

h

Ord

er

BO

M

Process Flow Diagram (Variant 1)Production with Intercompany ReplenishmentStock Availability Process

Pu

rch

aser

Req

ues

tin

g P

lan

t

War

eho

use

C

lerk

D

eliv

erin

g

Pla

nt

Create/Print/Send Intercompany

Purchase Order

Requesting Plant Receives

Purchase Order

Pick Material

from Stock

Ship Material to Requesting

Plant

Requesting Delivering

Plant Invoice

Missing Parts in Requesting Plant

Manufacturing

Acc

ou

nts

P

aya

ble

A

cco

un

tan

t

Eve

nt

Invoice Receipt and Payment

Sales from local stock

(B22)

Informs the Warehouse

Manager

Pro

du

ctio

n

Su

per

viso

rR

equ

esti

ng

Pla

nt

Check Stock availability in

Delivering Plant

War

eho

use

C

lerk

R

equ

esti

ng

P

lan

t

War

eho

use

M

anag

er

Del

iver

ing

P

lan

t

Create Delivery Note from

Intercompany PO

Goods Receiptand StockMaterial


Clerk

Process Flow Diagram (Variant 2)Production with Intercompany ReplenishmentManufacturing Process

Pu

rch

aser

R

equ

esti

ng

Pla

nt

War

eho

use

C

lerk

D

eliv

erin

g

Pla

nt


Purchase Order


Purchase Order

Pick Material

from Stock


Plant


Plant Invoice

Missing Parts or lack of

Production in Requesting Plant

Manufacturing

Acc

ou

nts

P

aya

ble

A

cco

un

tan

t

Eve

nt



(B22)

Informs the Production Supervisor

Pro

du

ctio

n

Su

per

viso

rD

eliv

erin

g

Pla

nt Check Potential

Capacity in Delivering Plant

War

eho

use

C

lerk

R

equ

esti

ng

P

lan

t

War

eho

use

M

anag

er

Del

iver

ing

P

lan

t


Intercompany PO



Manager

Release Manufacturing

Process in Delivering Plant


Clerk

Confirm Manufacturing

Process + Goods Receipt

Process Flow Diagram (Variant 3) - (I)Production with Intercompany ReplenishmentManufacturing Process with Production Data Change

En

terp

rise

C

on

tro

ller

Del

iver

ing

P

lan

t

Costing Run

Enterprise Controller

Information

New Product Introduction

Eve

nt

En

gin

eeri

ng

S

pec

ialis

tD

eliv

erin

g

Pla

nt

Change Production Data

Headquarter Information

Asynchronous Flow Prerequisite

Hea

dq

uar

ter

New Validated Manufacturing

Reference

Process Flow Diagram (Variant 3) - (II)Production with Intercompany ReplenishmentManufacturing Process with Production Data Change

Pu

rch

aser

R

equ

esti

ng

Pla

nt

War

eho

use

C

lerk

D

eliv

erin

g

Pla

nt


Purchase Order


Purchase Order

Pick Material

from Stock


Plant


Plant Invoice

Missing Parts or lack of

Production in Requesting Plant

Manufacturing

Acc

ou

nts

P

aya

ble

A

cco

un

tan

t

Eve

nt



(B22)

Informs the Production Supervisor

Pro

du

ctio

n

Su

per

viso

rD

eliv

erin

g

Pla

nt Check Potential

Capacity in Delivering Plant

War

eho

use

C

lerk

R

equ

esti

ng

P

lan

t

War

eho

use

M

anag

er

Del

iver

ing

P

lan

t


Intercompany PO



Manager




Clerk



Process Flow Diagram (Variant 4 - Option1) - (I)Production with Intercompany ReplenishmentManufacturing Process with Order Change Management without Order BOM

Cu

sto

mer


Request for QuotationE

ven

t Informs the Production Supervisor

Pro

du

ctio

n

Su

per

viso

rD

eliv

erin

g

Pla

nt

Informs the Warehouse Department



Sal

es

Dep

artm

en

t


After Approval Sales Order

Creation

En

gin

eeri

ng

S

pec

ialis

tD

eliv

erin

g

Pla

nt

Sales Order Change

Set Order Change Management


Customer Request for

Change



Manufacturing Flow with OCM …

Process Flow Diagram (Variant 4 - Option1) - (II)Production with Intercompany ReplenishmentManufacturing Process with Order Change Management without Order BOM

Pick Material

from Stock

Acc

ou

nts

P

aya

ble

A

cco

un

tan

t

Eve

nt

Invoice Receipt and


Sales from central stock

(B21)

War

eho

use

C

lerk

R

equ

esti

ng

P

lan

t

War

eho

use

D

epar

tmen

t D

eliv

erin

g

Pla

nt


IntercompanySales Order


Manager


Clerk

Cu

sto

mer


Ship Material to Customer


Plant Invoice

Requesting Customer

Invoice

Invoice Receipt and Customer

Payment

… Delivery Flow

Process Flow Diagram (Variant 4 - Option2) - (I)Production with Intercompany ReplenishmentManufacturing Process with Order Change Management with Order BOM

Cu

sto

mer


Request for QuotationE

ven

t Informs the Production Supervisor

Pro

du

ctio

n

Su

per

viso

rD

eliv

erin

g

Pla

nt

Informs the Engineering

Specialist

Informs the Warehouse Department



Sal

es

Dep

artm

en

t


After Approval Sales Order

Creation

En

gin

eeri

ng

S

pec

ialis

tD

eliv

erin

g

Pla

nt

Order BOM Creation

Set Order Change Management


Order BOM Change

Engineering Specialist

Request for Change



Manufacturing Flow with OCM …

Process Flow Diagram (Variant 4 - Option2) - (II)Production with Intercompany ReplenishmentManufacturing Process with Order Change Management with Order BOM

Pick Material

from Stock

Acc

ou

nts

P

aya

ble

A

cco

un

tan

t

Eve

nt

Invoice Receipt and


Sales from central stock

(B21)

War

eho

use

C

lerk

R

equ

esti

ng

P

lan

t

War

eho

use

D

epar

tmen

t D

eliv

erin

g

Pla

nt


IntercompanySales Order


Manager


Clerk

Cu

sto

mer


Ship Material to Customer


Plant Invoice

Requesting Customer

Invoice

Invoice Receipt and Customer

Payment

… Delivery Flow

© SAP 2009 / Page 23

Legend

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.


Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here


Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document


Budget Planning: Indicates a budget planning document


Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

<F

unct

ion>

Ext

erna

l to

SA

P

Business Activity /

Event

Unit Process

Process Reference

Sub-Process

Reference

Process

Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Proces

s

Existing Version /

Data

System Pass/F

ail Decisio

n

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SAP Best Practices for Subsidiary Integration in One Client Production with Intercompany Replenishment EHP4 for SAP ERP 6.0 SAP Business All-in-One.

Documents

subsidiary requesting

plant checks

plant stock availability

plant capacity analysis

intercompany billing

intercompany purchase

stock overview

intercompany payment